HomeMy WebLinkAboutRes 48-94 12/06/1994 RESOLUTION NUMBER 48-94
A RESOLUTION concerning
The Regulation of Basic Cable Service and Equipment Rates FOR the purpose of
Issuing an Accounting Order by Resolution declaring that Telenois' rates for basic service
ond equipment remain subiect to review ond further reduction (3nd refund and ordering Telenois
to keep adequate accounts and records so that it can poy any refunds ordered.
WHEREAS, under federol ond Iocol law, the Village of Mount Prospect ("Village") is
permitted to regulate rates for basic cable service and equipment; and
WHEREAS, the Village has begun to regulate bosic service and equipment rates, and
is currently in the process of reviewing the first round of information regording rates submitted
on Form 393; and
WHEREAS, the Village has been unable to issue (3 rate order on the Form 393 rates to
dote because of the considerable delay in filing the correct information on the part of Telenois;
and
WHEREAS, the Village issued an Accounting Order on March 16, 1994 holding rates at the
level at that time so that no increases would be implemented until the Form 393 rate rulemaking
process was completed; ond
WHEREAS, Telenois made changes to their rates effective July 14, 1994 to comply with FCC
regulations; and
WHEREAS, Telenois, Inc. ("Telenois"), was subsequently required by regulations of the
Federal Communications Commission ("FCC") to submit Forms 1200, 1205, and 1215 with regards
to rates and equipment/services since July 14, 1994 lhat are subiect to a second round of rate
regulation following the Form 393 process; ond
WHEREAS, the Forms 1200, 1205, and 1215 filed by Telenois were deficient as submitted
on August 11, 1994; and
WHEREAS, Sedion 6.706., Subsedions A & B of the Cable Communications Code
aulhorizes the Village to exercise its powers and to adopt and exercise regulations necessary
to enforce such authority over cable rates and services; and
WHEREAS, the Village found that additional information would be required to determine
the permissible rates for Telenois under the applicable FCC rules, and requested such additional
information from Telenois on,September 14, 1994; and
WHEREAS, Telenois responded to the Village's information request on September 16, 1994
with a letter indicating the company felt it had filed all required information; and
WHEREAS, the Village responded in writing on September 16, 1994 that the filing was not
complete and that until the required information was received, the filing would not be
considered valid and no time tables would commence; and
WHEREAS, in a phone conversation belween Telenois representatives, Susan Dean, Keith
I-leffron, and Lisa Ouzounian and Village Communications Administrator Cheryl Pasalic on
September 23, 1994, the company agreed to submit additional information if the Village's
consultant, Lou Karrison of Crowe Chizak, would compile a list of the missing items; and
WHEREAS, Mr. Karrison has spent several weeks evaluating the information and
compiling the list of missing information; and
WHEREAS, the Federal Communications Commission has adopted substantial changes
to its rate regulations, and more changes are likely in the future; and
WHEREAS, if Telenois had submitted a proper rate filing applying FCC benchmarks, the
Village would have to ad to approve, deny, or enter an accounting order and provide for further
investigation, within 120 days of that filing. Federal law, however, is unclear as to whether the
illage is under any obligation to ad at all within 120 days, given Telenois' failure to make
complete and timely filings as required; and
WHEREAS, to reserve all of its rights, the Village may be required to issue a rate order,
and such an order must require Telenois to keep adequate accounts and records so that the
company can comply if the Village later issues a rate decision that requires Telenois to pay
refunds; and
WHEREAS, the Village intends to conduct further review of the rates in light of additional
information it may receive, and in light of any forthcoming changes to the federal rate
regulations;
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE
VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS:
SECTION 1: The Village reserves all of its rights with resped to rate regulation, will continue to
review Telenois' rates for basic service and equipment, may require that additional information
be submifled, and may order rate reductions and refunds.
SECTION 2: The Village requires Telenois to keep adequate accounts and records of all amounts
received with resped to the Form 1200,1205, and 1215 rates at issue, and on whose behalf such
amounts were paid, so it is able to refund any overcharge amounts that may be determined to
those that paid them back in time to July 14, 1994, as may be required by subsequent order of
the Village. The refund period shall run from July 14, 1994 to the date a prospective rate
redudion order is issued by the Village.
SECTION 3: Telenois may not increase rates for basic service and equipment to any individual
subscriber or group of subscribers, or implement any new or additional charges for basic service
or equipment, absent prior, specific review and approVal by the Village.
SECTION FOUR: That this Resolution shall be in full force and effed from and after its passage
and approval in the manner provided by law.
AYES: Clo. wes, Corcoran, Hendricks, Hoefert, Skowron, Wilks
~YS: None
ABSENT: None
PASSED and APPROVED this 6th day of n~c:m~er .1994.
Gera d L. Far ey/Ma~)or/ /
/
Carol A. Fields, Village Clerk